Turning bullish - short term target price CAD $3.42Quick metrics:
All number is USD
Assuming '19 rev of $25MM
Addition of ASC of $6MM
Organic growth of 5% or cost savings of the same
Total projected rev for 2020 - $33MM
ASC multiple paid 1.15 price:rev - private market transaction - thus discount applies
VQS mutiple - should be 1.25 price:rev or greater - larger rev base, public shares, etc
Market cap - $41.25
FX 1.25
Market cap - CAD $51.5
Price target CAD $3.00
growth and revenue increase - possible organic growth - more aqusitions in 2020 premium
Price target $3.45 which represents a premium of 15% to the transaction value that ASC was just purchased at.
Quick math - however this is very exciting - new revenue - lots of it, and it is profitable - so they claim - until they hire more Sr. managers and blow the dough! Don't do that Pare -
I give them a thumbs up on this one. -